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Bitcoin technical analysis

  • #1,801
  • Jan 21, 2014 7:36pm Jan 21, 2014 7:36pm
Hi,

Thanks,
Yes part one it did - and whew - that is a nice piece of pie for a setup!


Part two was how does it actually mine or "fake mint" or produce one BTC? I think venzen wrote back as well but I have to look,

Then while thinking about that, I came up with - I will assume that if you mine it you own it?

Then more, how does it get put into the exchange? I suppose you sell the "coin" or "data" to a broker? The whole thing just adds more questions.

It was on the news out here that a restaurant on Long Island (Suburb of NYC) is accepting BTC. It was an interesting reaction. It seemed the people watching it,
had heard of it, but had absolutely!!! NO IDEA, about what it really was / how it worked. They were basically interested yet almost discouraged at the same time.

Then some guy (was in an office waiting area) started moaning about how "he heard that people were losing money and blah blah blah" at which point I decided NOT
to enter the conversation with my slight knowledge of how it is mined.
---------> Also I had posted an article somewhere in the thread about a guy who is making physical bitcoins.

Quoting lady_luck
{quote} Hey, If I can be honest, mining with your casual hardware is pointless nowadays. A gaming computer set-up would give -at best- 800mh/s, and most miner own an dedicated mining rig, called asic or fgpa, the coming generation will cost about $10.000 and mine at around 10th/s. That gives an order of the variances in amplitude. Then people gather their mining power in pool and share the benefit. Being a lonesome miner isn't rewarding anymore. Even pools faces difficulty competing against larger company. Starting to mine now would basically required...
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #1,802
  • Jan 21, 2014 8:14pm Jan 21, 2014 8:14pm
Las Vegas' Oldest Casino Starts Accepting The World's Newest Currency - Bitcoin

http://www.zerohedge.com/news/2014-0...rrency-bitcoin
  • #1,803
  • Jan 21, 2014 8:23pm Jan 21, 2014 8:23pm
I would likely take the Ten grand and if I was and either go on a mining excursion to Alaska or California in the Summer and mine/ pan/ sluice box for some nice big nuggets! or simply buy some gold n' silver and trade some BTC. I'm not hell bent on mining just curious of HOW or in perhaps simpler terms,

What is the course of action that has to take place for a/ ONE BTC to be "mined" and complete?

I know you had said it was something to the effect of a one person with the setup or a group of people have to "basically" select the same price via some fancy algorithm, that does the price matching then once it has completed it's "fancy" process one bitcoin is virtually mined.

Please correct whatever part or my statement, that is incorrect.

I will try and find the post you originally made.


Here is the guy's page that was minting Real BTC's
https://www.casascius.com/

""""""""

How they work: The "private key" is on a card embedded inside the coin and is protected by a tamper-evident hologram. The hologram leaves behind a honeycomb pattern if it is peeled. If the hologram is intact, the bitcoin is good. If you have purchased a 2-factor item, the private key is encrypted and will need to be decrypted using your original preselected passphrase before you can redeem the funds.
The 8-character code you see on the outside of the coin is the first eight characters of the Bitcoin address assigned specifically to that coin. You can verify the coin's balance on Block Explorer. There is a mathematical relationship between the Bitcoin address and the private key inside the coin. The digital bitcoin is actually located on the public "block chain" stored on the internet, but it is completely inaccessible to anyone unless the private key from the coin is loaded into a Bitcoin wallet.
To recover the digital bitcoins, there are several ways to convert the embedded code back into a digital bitcoin so it can be spent over the internet. Most importantly, none of the methods relies on me or any other central issuer, due to Bitcoin's completely decentralized design. The embedded private key code is everything a Bitcoin client needs to find and claim the digital Bitcoins from the peer-to-peer network. For example, you can enter (or "import") your coin's private key code directly into Bitcoin clients such as Armory, Blockchain.info, or directly into Mt. Gox as a deposit method. (Casascius coins use the "minikey" private key format, and the main Bitcoin.org client does not yet support redeeming minikeys.)
Of course, since the face value of the coins depends on the integrity of the embedded key code, you should only accept Casascius Bitcoins bearing an undamaged Casascius hologram from others. """""""""""

Quoting venzen
{quote} XTrade, it is as lady_luck explained it: Bitcoin mining is basically now only for purpose built rigs consisting of either 5-6 high-end AMD Radeon graphics cards with masses of cooling or banks of ASIC FGPU chips. If you're really into it you can spend $10k and join a mining pool but the difficulty of mining doubles about every month by now and within a few years it will be solely in the domain of supercomputing clusters. This ramp-up in difficulty is hardcoded in the Bitcoin DNA to ensure "slow-release" of the final 2million or so coins...
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #1,804
  • Jan 21, 2014 9:36pm Jan 21, 2014 9:36pm
Quoting XTrade
Hi, Thanks, Yes part one it did - and whew - that is a nice piece of pie for a setup! Part two was how does it actually mine or "fake mint" or produce one BTC? I think venzen wrote back as well but I have to look, Then while thinking about that, I came up with - I will assume that if you mine it you own it? Then more, how does it get put into the exchange? I suppose you sell the "coin" or "data" to a broker? The whole thing just adds more questions. It was on the news out here that a restaurant on Long Island (Suburb of NYC)...
I couldn't figure out the mining process for the longest time either. I looked everywhere and none of the explanations really explained it, it seemed the authors really didn't understand it either and was just regurgitating the story. I googled it and read page after page of explanations and still had no idea what it was. I understand it now. I'm not an expert at it, but I get the general idea. To "mine" a bitcoin is this. In order for the bitcoin "network" to work every time a bitcoin changes hands is has to be "verified". Not just by one computer, but all the computers that are "mining". So every single transaction has to be "verified". I still don't quite get how they do it, but there's a way it gets "verified". It takes lots of computing power to verify all the different transactions going on all the time. So the computers that are "mining" bitcoin are basically using their computing power to "verify" the different transactions. In exchange for using their computing power, they receive bitcoins as kinda like their compensation or pay for doing this work.

I know that isn't even close to a good explanation, but in a nutshell that's about what mining is. I think.....
  • #1,805
  • Jan 21, 2014 11:03pm Jan 21, 2014 11:03pm
What you are saying makes sense, But, would that mean that verifying = mining?
See what about the actual production of ONE, single, lone, BITcoin? How is one formed, is really still left unanswered.
At Nine Hundred a Pop they are not falling out of trees! I think the "mining" term for something that is thin air is a bit odd, but! They should use this term or the abbr.
KDD I think it is.

Data mining ahh this is what vzn meant - "Knowledge Discovery and Data Mining" or KDD -


-------

Thanks for writing, I looked a bit on oogle too, but gave up and figured I would get a better answer here! -- It was the same instance that you describe either
people pretending to know what they are talking about, or confusion!

venzen made a great post from what I remember answering it, but I have no idea where it is now or what would drag it out in a search. Didn't realize this thread had 59 pages already! Nice job VZ_ ok I think I have a good search let me find this thing!

Quoting dcramer16
{quote} I couldn't figure out the mining process for the longest time either. I looked everywhere and none of the explanations really explained it, it seemed the authors really didn't understand it either and was just regurgitating the story. I googled it and read page after page of explanations and still had no idea what it was. I understand it now. I'm not an expert at it, but I get the general idea. To "mine" a bitcoin is this. In order for the bitcoin "network" to work every time a bitcoin changes hands is has to be "verified". Not just by one...
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #1,806
  • Jan 22, 2014 12:01am Jan 22, 2014 12:01am
That's eye opening, certainly not bad. No idea there were even that many- thought it was just Mt. Gox and another.

Seems it was stuck in range today.

Quoting chonchy
{quote} with this miner........ https://products.butterflylabs.com/ you can buy here..... https://en.bitcoin.it/wiki/Trade or here...... https://www.bitcoinstore.com/ or even here....... http://www.akcoins.com/?gclid=CNTIk-...FaYDOgodTy0AeQ or trade them here........ https://btc-e.com/ that much you can do with bitcoin, and it has go from 0 to 1000 in a few years, not bad for a crypto.....like venzen said if it goes to $10 dollars again, you haven't lost yet, it could go back up in a Mather...
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #1,807
  • Jan 22, 2014 12:05am Jan 22, 2014 12:05am
OK I found the Post. DC and all. So when venzen comes on line we can ask as I read this again.

Quoting venzen
{quote} XTrade, I've now read all the posts up to here and i think we all have agreement that this is a teriffic trade instrument. Not for speculating one's life-savings on but still for speculating - with what you can invest according to your own risk and money management plan. As for the currency part, Chonchy says it very well: IF that aspect of the Bitcoin comes to fruition then it will be a terrific victory in the face of the banksters and technocrats. Meanwhile, it's good for trading. In response to your post quoted above, let me try and clarify...
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #1,808
  • Jan 22, 2014 12:35am Jan 22, 2014 12:35am
Quoting KiwiOz
{quote} Yse venzen. I do think Andreessen Horowitz called you a Nerd...

ahem... eh... speaking for myself of course... no way you lovely people here fit the description of "nerds"...
cryptocurrency everytime
  • #1,809
  • Edited 1:26am Jan 22, 2014 1:14am | Edited 1:26am
Quoting XTrade
I would likely take the Ten grand and if I was and either go on a mining excursion to Alaska or California in the Summer and mine/ pan/ sluice box for some nice big nuggets! or simply buy some gold n' silver and trade some BTC. I'm not hell bent on mining just curious of HOW or in perhaps simpler terms, What is the course of action that has to take place for a/ ONE BTC to be "mined" and complete? I know you had said it was something to the effect of a one person with the setup or a group of people have to "basically" select the same price via some...
hi XTrade,

I'm responding to older posts first (not having read all) and may overlap issues...

Simply put, mining is the process that brings Bitcoins into existence. So some background first:

The "Arc Angels" (my word to denote "overseers") of the entire Bitcoin universe consists of many instances of the same piece of software called the bitcoin daemon (sounds evil but just a software term for an "always-on and waiting" process). Every computer that installs and runs the bitcoin daemon joins the Bitcoin peer-to-peer network and becomes a "node" which is equal to any other node. Hence the nodes replicate the state of the Bitcoin universe amongst themselves and each node knows what all other nodes know. Nodes can come and go with no effect on the integrity of the network or the state of the Bitcoin universe. This is the decentralized p2p Bitcoin network. OK.

The Bitcoin daemon also has the ability to generate coins (or "mine" coins). You simply tell it to "generate" and it will start work and after solving many many mathematical problems related to the Bitcoin universe's history (a record of transactions called "the Blockchain") it will submit the math solution to the Blockchain and 25 Bitcoins will "come into being". I'll describe it again in another way: This node that solves the math for a particular "block" of transactions in the Blockchain will (upon completion) submit the solution to the Blockchain. The Blockchain is common property of all nodes in the p2p network, so upon successfully solving a block maths problem and submitting the answer - all the nodes will become aware of this fact and agree to allow 25 Bitcoins to come into existence. The newly minted coins are awarded to the node that solved the problem and this information is recorded for eternity in the Blockchain. The person who owns that node (i.e. is running the Bitcoin daemon on their computer) will see 25 BTC appear in their Bitcoin wallet. They have just "mined" 25 Bitcoins.

So, simple enough, but there is a caveat: The math problems become exponentially more difficult over time and so, at the beginning of the Bitcoin era (in 2009) it would have taken a few minutes (with an ordinary PC) to solve a block "hash" (math problem) and be awarded 25BTC. Right now the same PC would take several years to solve a block hash. So to shorten the time to reward, miners constantly upgrade their hardware AND combine their efforts in "mining pools" where several miners (up to thousands) all work on the same block hash communally and then share the 25BTC reward after a day or week's effort.

I think that explanation should clarify it. As for your question about how One Bitcoin (1BTC) is mined - it's not - the minimum hardcoded amount of Bitcoin that is generated by a successful mining effort is 25. Whether it is awarded to one person or shared amongst thousands, the Bitcoins end up being deposited (transferred) to a wallet address (or addresses in the case of a mining pool). Once in the wallet, the Bitcoin (or portions thereof) can be transferred to any other wallet address - no exchange is involved - it's equivalent to sending an email except that the transaction is recorded in the Blockchain as a standard accounting "double-entry" transaction. That takes a few minutes or hours depending on the state of the network and the transaction is public - anyone can see and inspect it. Exchanges only get involved once you wish to exchange your Bitcoin for fiat or for other cryptocurrencies.

I tried to explain that without using geekspeak but some of the concepts are very technofile by necessity. Hope that helps
cryptocurrency everytime
  • #1,810
  • Jan 22, 2014 1:24am Jan 22, 2014 1:24am
Quoting dcramer16
{quote} I couldn't figure out the mining process for the longest time either. I looked everywhere and none of the explanations really explained it, it seemed the authors really didn't understand it either and was just regurgitating the story. I googled it and read page after page of explanations and still had no idea what it was. I understand it now. I'm not an expert at it, but I get the general idea. To "mine" a bitcoin is this. In order for the bitcoin "network" to work every time a bitcoin changes hands is has to be "verified". Not just by one...

hi DC,

I only read this after writing my longer explanation. But your understanding is correct: mining is both the process whereby new coins are generated as well as the work required to make the Bitcoin network function (transaction processing and verification). The algorithm that introduces "difficulty" into the verification process is embedded in the p2p network so cannot be altered without setting alarms off all over the place. (Unless someone controls 51% of all active nodes)
cryptocurrency everytime
  • #1,811
  • Jan 22, 2014 4:42am Jan 22, 2014 4:42am
this tradingview analyst makes a good point:

https://www.tradingview.com/i/mdNYEkop
cryptocurrency everytime
  • #1,812
  • Jan 22, 2014 4:50am Jan 22, 2014 4:50am
Quoting venzen
this tradingview analyst makes a good point: {image}
The Chonchy
  • #1,813
  • Jan 22, 2014 4:57am Jan 22, 2014 4:57am
Quoting lady_luck
{quote} Hey, I actually wouldn't mind, but since you are in the US, the only way I'd see it would be by Western Union, which immediately would sound like "Yes, I am Nigerian Queen, I have trillion of ZWD stuck on Gox, send me dollar I give you BeadTC". So we'd have to set up escrow and all... You might want to look at localbitcoins.com, I'm sure you'd find an easier solution, they have plenty of option.

Thanks "Nigerian Queen" I will try localbitcoins.com, just saw your post rite now, we are posting so much that starting to slip b if you are not careful, and they are all important for me, thanks......
The Chonchy
  • #1,814
  • Jan 22, 2014 5:10am Jan 22, 2014 5:10am
H1 triangle broken with target around 806. Two days of congestion had to find an outlet eventually.
Tech's say we go down yet all the Fundies say otherwise ??
Attached Image (click to enlarge)
Click to Enlarge Name: btcusdh1.png Size: 43 KB
Money Makes Money
  • #1,815
  • Jan 22, 2014 5:21am Jan 22, 2014 5:21am
Good morning traders.......

........My view is that we are trap here betwing the two ema's blue 5 and the choco ema 30, and to the upside we have the red ema 100 to pass, big resistance, but nothing that the good BTC can do.....

Attached Image (click to enlarge)
Click to Enlarge Name: btcusdh4.png Size: 41 KB


.....On the daily I still think is going to the magenta line or lower trend line.....wish coincidently is going to meet the choco ema 30 on that TF......also good support to the down side, good luck.....I'm stuck with the remodeling of the bathrooms here at home and now the air conditioning pipes have to be change, is an old house and there is a leak of gas, oh well, welcome to the world.....

Attached Image (click to enlarge)
Click to Enlarge Name: btcusdh4.png Size: 41 KB
Attached Image (click to enlarge)
Click to Enlarge Name: btcusddaily.png Size: 35 KB
The Chonchy
  • #1,816
  • Jan 22, 2014 5:24am Jan 22, 2014 5:24am
Quoting chonchy
Good morning traders....... ........My view is that we are trap here betwing the two ema's blue 5 and the choco ema 30, and to the upside we have the red ema 100 to pass, big resistance, but nothing that the good BTC can do..... {image} .....On the daily I still think is going to the magenta line or lower trend line.....wish coincidently is going to meet the choco ema 30 on that TF......also good support to the down side, good luck.....I'm stuck with the remodeling of the bathrooms here at home and now the air conditioning pipes have to be change,...

I don't know why the 4H chart appear twice in my post, but I can't erase one, don't know why......sorry, have a great day......
The Chonchy
  • #1,817
  • Jan 22, 2014 5:26am Jan 22, 2014 5:26am
Quoting KiwiOz
H1 triangle broken with target around 806. Two days of congestion had to find an outlet eventually. Tech's say we go down yet all the Fundies say otherwise ?? {image}
nice analysis and chart KiwiOz....
The Chonchy
  • #1,818
  • Jan 22, 2014 5:34am Jan 22, 2014 5:34am
Quoting venzen
this tradingview analyst makes a good point: {image}
Hello,
Makes me think, what do you think of 4xForecaster analysis on trading view ?
EDIT : last week or so I got almost the same fork as on your chart, interesting

Hopefully Chonchy you'll find something that works for you, just as a rule of thumb don't do any paypal

Infinitus, Kiwioz, may I ask (just curiosity) if your counts toward -respectively- sub100 and 600+ still appears as clear as last week ?
  • #1,819
  • Jan 22, 2014 5:35am Jan 22, 2014 5:35am
Quoting KiwiOz
H1 triangle broken with target around 806. Two days of congestion had to find an outlet eventually. Tech's say we go down yet all the Fundies say otherwise ?? {image}

KiwiOz, I'm happy to see your forecast.... this is exactly what we need - some downside before a launch...
cryptocurrency everytime
  • #1,820
  • Jan 22, 2014 5:39am Jan 22, 2014 5:39am
Quoting chonchy
Good morning traders....... ........My view is that we are trap here betwing the two ema's blue 5 and the choco ema 30, and to the upside we have the red ema 100 to pass, big resistance, but nothing that the good BTC can do..... {image} .....On the daily I still think is going to the magenta line or lower trend line.....wish coincidently is going to meet the choco ema 30 on that TF......also good support to the down side, good luck.....I'm stuck with the remodeling of the bathrooms here at home and now the air conditioning pipes have to be change,...

chonchy, Thanks for the update, so it confirms what KO sees and I see too. Good luck with the renovations and make sure the tulips aren't exposed to any of that leaking gas - they might crash
cryptocurrency everytime
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